Shake Shack Earnings: SHAK Stock Takes 14% Fall on Lackluster Outlook

SHAK also missed Q3 revenue estimates

Shake Shack (NYSE:SHAK) earnings for the fast-food chain’s third quarter of 2019 have SHAK nosediving on Monday. This comes despite its adjusted per-share earnings of 26 cents. That’s well above Wall Street’s estimate of 20 cents for the quarter. However, its revenue of $157.76 million is below analysts’ estimates of $157.83 million.

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Let’s see what else went down in the most recent Shake Shack earnings report.

Adjusted EPS is up 23.81% from 21 cents in the third quarter of 2018.

The company’s revenue is 31.85% better YoY than $119.65 million.

Operating income comes in at $8.16 million.

That’s a 12.63% decrease from operating income of $9.34 million in the third quarter of the previous year.

The Shake Shack earnings report also includes a net income of $11.42 million.

This is a 54.32% increase over the chain’s net income of $6.95 million in the same period of the year prior.

“We’re pleased to report total revenue grew nearly 32% and the team delivered another quarter of positive Same-Shack sales of 2%, continuing to drive positive traffic of 1.2%. Based on our results to date, we are raising our 2019 revenue guidance, including our licensing revenue guidance.”

Unfortunately for SHAK stock, that revenue increase isn’t enough. It has the company expecting revenue ranging from $592 million to $597 million for 2019. That will have it missing Wall Street’s 2019 revenue estimate of $599.65 million.

SHAK stock was down 14.44% after the markets closed on Monday. The stock closed out the day up 1.74%.

As of this writing, William White did not hold a position in any of the aforementioned securities.